Inflation unexpectedly rose last month to 2.6 per cent, driven by a rise in airfares and fashion retailers cutting back on discounts.

However economists still expect the figure to fall below its official target of 2 per cent later this year.

The Office for National Statistics said Consumer Price Inflation (CPI) rose to 2.6 per cent in July, from 2.4 per cent in June, its first rise since March. Analysts had expected it to fall to 2.3 per cent.

Economists said this should prove to be a temporary blip and believe that inflation will resume its downward trajectory. Unveiling its